Non-Profit Bonds (501c3)

Features Taxable and tax exempt securities issued by a government entity Lower interest rates due to Federal & State tax exemptions May be used for property acquisition, equipment purchases, building improvements, construction and expansion Requirements Must be an IRS designated 501(c)3 organization Public benefit considerations 10-20% cash down payment 100% letter of credit from an "A" rated financial institution State law requires that one job be created or retained for every $50,000 in bond proceeds More Flexibility Refinancing of existing taxable debts is permitted Borrower's Board of Directors to adopt a "Resolution of Intent" State Treasurer's Office approval is not required Maximum Bond Size Unlimited Target Borrowers Must be an IRS designated 501(c)3 non-profit organization Frequently asked questions about Non-Profit Bonds

1200 West 7th Street, 6th Floor, Los Angeles, CA 90017
213-744-7111 | 213-744-9395 (TTY) | 213-744-9382 (Fax)